The Bitcoin price could plummet. But it could also easily break the $ 250,000 mark. Welcome to the Opinion ECHO.
Whales could easily plunge the Bitcoin rate down
Bitcoin whales – those mysterious beings that hold huge amounts of Bitcoin – control a large part of the total supply of BTC. According to Bloomberg information, investors with 1,000 to 1 million BTC hold a total of 42.1 percent of all existing units of the digital currency. The majority of these whales also appear to be very sluggish – only 3.5 percent of all addresses trade at all. Accordingly, Bitcoin whales could have a massive impact on the Bitcoin price history. Here’s what John Griffin said to Bloomberg:
“The problem with some big players holding crypto is that when they sell, they can push the price down slightly, making the market prone to rapid fluctuations.”
According to the same information, the danger that exists here seems to be real. As the business news magazine further reports, the 10,000 to 100,000 largest addresses are in the hands of family offices and wealthy individuals who can sell their coins if the Bitcoin exchange rate does not perform as desired. The investors of this size held at least 15 percent of the total BTC stock. Accordingly, Bloomberg quotes her crypto analyst Aaron Brown:
“I doubt that they have infinite patience, and without significant growth in actual use, I would expect them to quietly retreat to pursue other promising technologies. They have no big financial or ideological commitment to crypto or the ideals and technologies behind it.”
Tone Vays: Time to pray for Bitcoin
Tone Vays is hitting a similar notch, however – from a technical-analytical point of view. In his December 11 analysis, he identified the $ 7,200 mark broken at that point as critical:
The Bitcoin rate breaks under very critical support. This is not good. Time to pray for the best, but prepare for the worst. […] The fact that we broke this support gives the bears an advantage. The moving averages look very, very bad. […] However, it is also quite possible that the [Bitcoin price] will jump back. One should be very careful about shortening something that is just below its moving average, even if the moving averages give you the most bearish picture possible.